1999 (5) TMI 164

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..... r (J)]. The issue in this appeal relates to denial of credit under rule 57A of the Central Excise Rules, 1944 on cutting oil and quenching oil used for cooling of steel. The Revenue is aggrieved by the order of the lower appellate authority who has extended the credit of these two items, holding that they are used in or in relation to the manufacture of final product namely forgings by the r .....

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..... We have considered the submissions of both sides and we see force in the submission of the respondent that the Tribunal decision relied upon by the Learned DR will not be applicable in the present case for the reason that in Notification 201/79 which is considered by the Tribunal, the expression is used as inputs i.e. raw material or components in the manufacture of finished products while the exp .....

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..... il, due to excess heating of accessories during high speed rotation of forgings, there are chances of inserts breaking and getting entrapped into the forgings and therefore in order to maintain the normal temperature, cutting oil is used which is continuously poured on cutting tool or grinding wheel. From the explanation of, usage of these items and having regard to the wider language of Rule 57A .....

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